Category: Candlesticks

Candlesticks archives contain all the Bullish Bears articles on the meaning of a candlestick as well as patterns.

Candlesticks are the name of the game and the first line of defense. By themselves they tell a story. When grouped together they form patterns.

Those patterns show continuations or reversals. They also provide support and resistance along with the real bodies and wicks of candles.

Moving averages and other indicators don’t mean anything without candles. As a result, they could be considered the most important part of trading.

Candles are used to gauge the emotions of other traders. They are bullish, bearish or indecisive.

As a result of candles being the foundation for trading, knowing what candlesticks mean help you chose when to trade and when to wait.

This section contains all the articles relating to the different types of candles as well as patterns and how to trade them successfully.

Double Top Patterns

Double top patterns are a bearish pattern. It consists of two peaks or resistance levels. After the first peak level is formed, price pulls back either quickly or gradually. After that, price moves back up to the first level but it can’t break that first peak level and fails, thus creating the double top rejection….

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Inverted Cup and Handle Patterns

Inverted cup and handle patterns are the inverse of their counterpart the cup and handle. They are a bearish pattern. Picture the cup and handle upside down. The rounded bottom is up top and as price falls down to the base of the cup, it then gets a pop and retracement, which forms the handle….

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V Bottom Patterns

V bottom patterns are a bullish pattern that look like the name that they are called. Price moves up to a peak level and then starts to pull back or fall rapidly. Once price has found a base, it makes a sharp pointed reversal to the upside. Then, price goes back up to the 1st…

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Cup and Handle Patterns

Cup and handle patterns are a bullish pattern that look like the name that they are called. Price moves up to a peak level and then starts to pull back or fall rapidly. Once price has found a base, several candlesticks form the rounded cup bottom. Then, price goes back up to the 1st peak…

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Inverse Head and Shoulders Pattern

Inverse head and shoulders patterns are a bullish pattern. It’s made up of a head and two shoulders. The left shoulder marks the first support level. As price rises, it goes up to make a new high, then it pulls back and falls below first support level, thus creating the head. Next up, price pulls…

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Head and Shoulders Patterns

Head and shoulders patterns consist of several candlesticks that form a peak, which makes up the head, and two lower peaks that make up the left and right shoulders. The right shoulder on these patterns typically is lower than the left but many of times it’s equal. Sometimes there’s a fake out which makes right…

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Falling Wedge Patterns

Falling wedge patterns are bigger overall patterns that form a big bearish move to the downside. They form by connecting 2-3 points on both support and resistance levels. Price action forms a big down channel. It becomes bullish once price breaks out of the wedge. Look for a retest of the wedge after breakout and…

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Rising Wedge Patterns

Rising wedge patterns are bigger overall patterns that form a big bullish move to the upside. They form by connecting 2-3 points on both support and resistance levels. Price action forms a big up channel. It becomes bearish once price fails the base of the wedge. Look for a retest of the base of the…

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Descending Triangle Patterns

Descending triangle patterns are a bearish pattern. They have 3 or more previous support levels that form a flat bottom. They also have lower highs that form, causing a bearish trendline. Look for price to fail the base of the triangle. If price action retests the base and fails then you’ll have bearish confirmation. Watch…

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Ascending Triangle Patterns

Ascending triangle patterns are a bullish pattern. They have 3 or more previous resistance levels that form a flat top. They also have higher lows that form, causing a bullish trendline. Look for price action to break above the flat top. If price action retests and holds then you’ll have bullish confirmation of a breakout….

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